Motorists gouged for auto stickers: city clerk

Chicago motorists are being ripped off by currency exchanges that should be discounting city stickers sold during the year and capping service fees at $5.50, newly appointed city Clerk Miguel del Valle said Wednesday.

With an eye toward the Feb. 27 election, del Valle asked his staff to call roughly two dozen currency exchanges and ask what they charge for a city sticker that's supposed to cost $75 only when it's purchased for a full year.

Half of the currency exchanges called were overcharging consumers, by anywhere from $10 to $30, the clerk said.

Stickers sold during the course of the year are supposed to be prorated. They're sold for $50 after Dec. 1 and $25 after April 1.

Currency exchanges surveyed were either charging the full price of $75 -- a $25 overcharge -- or doubling the service fee. Some were charging a $10 service fee for a transfer that costs just $20. Transfers entitle motorists to switch a valid sticker to a newly purchased vehicle.

On Wednesday, del Valle held a news conference outside an accused currency exchange at 3200 W. Armitage to urge motorists similarly gouged to come forward in exchange for a refund.

That's what happened to Al Kindle. Earlier this week, he paid $82 at the Armitage-Kedzie Currency Exchange for a sticker that was supposed to cost $50, plus a service fee of no more than $5.50. Thanks to the clerk, he got his money back.

"The owner came out afterwards and said he didn't know about the prorated [fee]. He said, 'I'm not a thief. I didn't know.' I said, 'It's the law. It's been the law. That means you've been overcharging for some time.' We won't tolerate it -- even if it's due to ignorance," del Valle said.

Roughly 1.1 million city stickers are sold each year, generating $90 million in annual revenue.

"About 40 percent of city stickers are purchased through currency exchanges. We're the currency exchange capital of the nation. We're talking about millions of dollars" in potential overcharges over the years, the clerk said.

Del Valle said he's sending a letter to Chicago's 400 currency exchanges warning them of the service fee cap and prorated sticker fees and demanding that motorists be given receipts.

"We have the authority to conduct audits if there's a problem at a particular currency exchange. When was the last time an audit was conducted? I don't know of one," he said.

The clerk said he's also reviewing the city contract that calls for United Armor to be the exclusive distributor of city stickers to currency exchanges.

"The contract we have stipulates that United Armor train currency exchange employees in how to process sticker applications. That obviously wasn't happening," he said.

Motorists who think they've been overcharged for stickers were asked to call the clerk's office at (312) 744-1528 -- even if they don't have a receipt.

fspielman@suntimes.com